Vividly recall a conversation with a very well connected source who stated that Australia's corporate governance was indeed second best: Second best to the rest of the industrialised world.
It is a very pertinent nexus. The gaps in Corporate Governance have grown. It was a decade or so ago that the Sarbanes-Oxley Act, in the USA arose from extreme examples of what Australia is witnessing in a self regulated banking model: Back self interest every time. Lack of regulation has done nothing. The new ASIC Chair inherits a mess, ASIC's prosecution mix is low risk, mostly civil and obvious is the lack of any action against what would be classed as enviable opposition. Low risk and look the other way. Mr Shipton's pedigree no better than the former, another insider, this time of Goldman Sachs no less. In the UK and the USA the Company code now requires the Executive remuneration to be referenced to the average wage level in the firm. One can appreciate the 'business type lobby groups' are donating furiously to ensure such reference is not a statutory requirement in Australia.
A whisper suggests that this may be extended to reference key performance metrics which are less suspected to manipulation by effervescent CFOs. Australia will enact a raft of penalties after Australia's Enron moment too!
By any measure, Qantas executive management have been focused internally on a war with the staff and short term sugar hits to performance that share buy backs are known for. They have been enboldened by short term incentives and lack of regulatory oversight. That ASIC never blinked when a 'terminal' Qantas was 'transformed' and executives reaped rivers of well timed Option bonuses is testament that the regulator has no appetite for investigation.
In the intervening period, other airlines with strategic management a focus and not self embellishment have re-equipped with fuel efficient twin engine Long range aircraft. Doing so,lowers the CASK and and preserves operating margin for when fuel gets more expensive or demand (and consequently yield) falls.
Qantas got lucky with a fuel price decline.
Qantas still need a new fleet.
Last edited by Rated De; 25th Apr 2018 at 01:36.